In Thursday’s trading session, shares of one of the leading green energy PSU,under the Ministry of the Government, specialising in the development, operation, and management of renewable energy projects, were in focus following the incorporation of a new joint venture with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL)
Price action
With a market capitalization of Rs. 1,04,697 crores on Thursday, the shares of NTPC Green Energy Limited were trading at Rs. 123 down by 3.5 percent making a low of Rs. 121.10 per share compared to its previous closing price of Rs. 125.45 per share.
What Happened
NTPC Green Energy, subsidiary of NTPC Limited, specializing in the development, operation, and management of renewable energy projects, has announced the incorporation of a new joint venture with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL), a government-owned entity of Rajasthan.
This joint venture is a 74:26 partnership between the two companies, focusing on the development and operation of renewable energy parks/projects, involving solar, wind, and hybrid energy, with a planned capacity of up to 25 GW in Rajasthan. It will also work on green hydrogen and its derivatives, such as green ammonia and green methanol, with a target capacity of 1 million tons.
The venture was approved by the Ministry of Power, Government of India, and NGEL has subscribed to 74,000 equity shares at a face value of Rs. 10 each. The joint venture will contribute to advancing renewable energy initiatives in India.
About the company
NTPC Green Energy Limited (NGEL), a wholly owned subsidiary of NTPC Limited, focuses on harnessing renewable energy sources to power India’s transition towards a greener, more sustainable future. Established with the vision of contributing to the country’s clean energy goals, NGEL is actively involved in the development, operation, and maintenance of renewable energy projects, including solar, wind, and hybrid power systems.
The company aims to reduce carbon emissions and enhance energy security by increasing the share of green energy in India’s overall power mix. NGEL is aligned with NTPC’s commitment to achieving a carbon-neutral future and is dedicated to setting new benchmarks in the renewable energy sector through innovative solutions, large-scale projects, and strategic partnerships.
Shareholding Pattern
NTPC Green Energy Limited’s ownership is divided as follows: promoters hold 89.01 percent, Foreign Institutional Investors (FIIs) have 2.24 percent, Domestic Institutional Investors (DIIs) own 5.08 percent, and the public holds 3.68 percent. This diverse ownership reflects strong investor confidence in the company’s growth prospects.
Financials
The company’s revenue rose by 10.9 percent from Rs 1,021.14 crore to Rs 1,132.74 crore in H1FY24-25. Meanwhile, Net profit declined from Rs 208.16 crores to Rs 175.3 crore during the same period.
Key Financial ratios
NTPC Green Energy (National Thermal Power Corporation) Limited has an Return on Equity (RoE) of 3.82 percent and a Return on Capital Employed (RoCE) of 4.21 percent. Furthermore, the company’s debt-to-equity ratio is 2.2.
Written by Sridhar J
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